12-Sep

Ver 1.2

CREDIT POLICY -Personal Finance

Sign Off : Date

Mr.Atul Pande 12-Sep-06

Managing Director

Mr.Harmander Singh Mahal 12-Sep-06

Business Head - PL

Mr.Venkatramanan T M 12-Sep-06
National Credit Manager - PL

Content :
Credit Policy
Deviation Matrix
Documentation
Caution Profiles
Negative Profiles
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Credit Policy -Personal Finance - Sep 06 - Ver 1.1

Product criteria Income - Sal Income - Semp Repayment BT Banking -Semp Banking - Sal
Product Code SPSL SPSE SPRL SPBT SPBK SABK
Salaried Individuals Self Employed individuals Salaried/Self-Employed Salaried/Self-Employed Self Employed Salaried
individuals. Only individual.Salaried
Profile Proprietorship firms. profiles with salary
certificates and no
salary credit in bank.
Min Loan Rs.10000 Rs.10000 Rs.10000 Rs.10000 Rs.10000 Rs.10000
Max Loan Rs.50000 Rs.50000 Rs.50000 Rs.75000 Rs.50000 Rs 30000
Min Tenor 12 months 12 months 12 months 12 months 12 months 12 months
Max Tenor 36 months 36 months 36 months 36 months 24 months 24 months
Min Income norms Rs 42000/- per annum. Rs 42000/- per annum. N/A N/A N/A N/A
Min Age 21 21 21 21 25 25
Max Age 58 65 65 65 65 58
Minimum 1 year in current Minimum 2 years. Minimum 1 year for sal/ 2 Minimum 1 year for sal/2 2 years in business and 2 years in current
employment. years for semp years for semp operating from the employment, to be
same shop or setup. verified by FI.Total work
Biz Stability
experience > 3 years to
be confirmed during
discussion.
Capped at 70% of Capped at 70% of N/A.Not more than 3 live N/A.Not more than 3 live No loans to be taken in No loans to be taken in
applicant’s net disposable applicant’s net disposable loans. Not more than 2 loans. Not more than 2 latest 2 months. latest 2 months.
Debt Burden Maximum of 2 live Maximum of 2 live
verifiable income. verifiable income. live PL. live PL.
loans. loans.
1 year in current residence, 1 year in current 1 year in current 1 year in current 2 years in current 2 years in current
if own house not required residence, if own house residence, if own house residence, if own house residence, if own house residence, if own house
but 2 years in same city. not required but 2 years in not required but 2 years in not required but 2 years not required but 2 not required but 2
Ownership proof to be same city. Ownership proof same city. Ownership in same city. Ownership years in same city. years in same city.
attached if owned.If to be attached if owned.If proof to be attached if proof to be attached if Ownership proof to be Ownership proof to be
Resi Stability parental owned relationship parental owned owned.If parental owned owned.If parental owned attached if owned.If attached if owned.If
proof to be attached. relationship proof to be relationship proof to be relationship proof to be parental owned parental owned
attached. attached. attached. relationship proof to be relationship proof to be
attached. attached.

N/A
Resi Stability in
case of Resi Cum
Business Owned
F I at Residence Mandatory
Waived for approved list of
companies, subject to
FI at Office positive office TVR and
employee ID proof
Incase of Resi Cum Incase of Resi Cum Incase of Resi Cum Incase of Resi Cum N/A
Business the stability Business the stability Business the stability Business the stability
should be greater than 2 should be greater than 2 should be greater than 2 should be greater than
years.Business should be years.Business should be years.Business should be 2 years.Business should
active, Name board active, Name board active, Name board be active, Name board
sighted. sighted. sighted. sighted.
Mandatory Mandatory Mandatory Mandatory Mandatory
Mandatory Mandatory Mandatory Mandatory Mandatory
 Atleast 1 direct line in
residence and office.Wll can
be considered if latest 2
Telephone months bill attached and no
Requirements defaults sighted.
Atleast 1 direct line in
residence and office.Wll
can be considered if latest
2 months bill attached and
no defaults sighted.
Atleast 1 direct line in
residence and office.Wll
can be considered if latest
2 months bill attached and
no defaults sighted.
Atleast 1 direct line in Atleast 1 direct line in Atleast 1 direct line in
residence and office.Wll residence and office.Wll residence and office.Wll
can be considered if can be considered if can be considered if
latest 2 months bill latest 2 months bill latest 2 months bill
attached and no defaults attached and no attached and no
sighted. defaults sighted. defaults sighted.

Latest 3 months bank
statement to be considered.
Salary credit is
mandatory.Salary credit
through cheque can be
accepted subject to 6
months bank statement
reflecting the cheque
deposit, consistency in
Banking Norms amount, deposit date and
should be backed by a
payslip.No Inward cheque
returns in latest 3
months.ABB to be 1 time
emi.
Atleast 8 transactions in 6 emi clearance to 6 emi clearance to Age of Bank 1 year.4 3 customer initiated
3months.Two credit per reflect.Minimum 2 credits reflect.Minimum 2 credits customer initiated transactions per
month or 6 credits in total per month only for self per month only for self transactions per month.Average balance
.Age of Bank 1 year.ABB to employed. No other employed. no EMI month.Average balance > 1500.2 credits per
be 1 time emi.No Inward cheque return in the latest repayment return in last > 2000.2 credits per month or 12 credits for
cheque returns in latest 3 months and no EMI 3 months return as the month or 12 credits in 6 6 months .1 I/W return
months. repayment return in last 3 product is around months.1 I/W return permitted in 6 months
months as the product is repayment.No other permitted in 6 months and not in the latest
around repayment. cheque return in the but not the latest 2 two months. Average
latest 3 months. months.Average balance to be calculated
balance to be calculated for latest 3 months.18
for latest 3 months.24 transactions in 6
customer initiated months.
transactions in 6
months.

Based on Budget Analysis. Based on Budget Analysis. For CD/TW Loans 6 - 12 CD/TW/PL repayments to Multiplier of 1 times Multiplier of 0.75 times
months - 1 time EMI . > be treated with a 1.5 ABB to be considered as ABB to be considered as
12 months and matured times multiplier.The EMI. EMI.
laons is 1.5 times emi. lowest emi to be
Loan Eligibility
For PL repayments 6 - 12 considered in case of 2
months - .75 times of the PL's.
lowest emi and > 12 and
matured loans 1.25 times.
N/A latest two years ITR to be Minimum emi to be 500.In Minimum emi to be N/A N/A
filed with a gap of 6 case of two PL running, it 500.In case of two PL
months. should have a combined running, it should have a
seasoning of 12 mths, combined seasoning of
THERE CAN BE ONE PL 12 mths,THERE CAN BE
WHICH IS 9 MOB AND ONE PL WHICH IS 9 MOB
Other Norms OTHER TO BE MINIMUM 3 AND OTHER TO BE
MOB.Maximum of 3 loans MINIMUM 3
in the bank and as per MOB.Maximum of 3 loans
CIBIL.No PL in the last 3 in the bank and as per
mths.The run off period for CIBIL.No PL in the last 3
matured loans to be less mths.
than 6 months.t
Mandatory.Refer section on Mandatory.Refer section N/A N/A N/A N/A
budget analysis. on budget
analysis.Multiplier on ITR
Budget Analysis to be 1.5 times against
exsisting policy of 2 times.

To be conducted by the To be conducted by the To be conducted by the To be conducted by the To be conducted by the To be conducted by the
Personal Credit Manager.Mandatory. Credit Manager.Mandatory. Credit Credit Credit Credit
Discussion Manager.Mandatory. Manager.Mandatory. Manager.Mandatory. Manager.Mandatory.

Mandatory.One with friend Mandatory.One with friend Mandatory.One with friend Mandatory.One with Mandatory.One Famil Mandatory.One Famil
Telephone and relative.One should be and relative.One should be and relative.One should be friend and relative.One and other business and other
verification landline. landline landline should be landline associate.Both colleague.One should
landlines. be a land line.
 To be done on exsisting To be done on exsisting To be done on exsisting To be done on exsisting To be done on exsisting To be done on exsisting
De Dupe database and CIBIL database and CIBIL database and CIBIL database and CIBIL database and CIBIL database and CIBIL

Bank statement & other Mandatory for ITR Bank statement & other Bank statement & other Mandatory for Bank Mandatory for Bank
RCU check documents on Sample basis documents on Sample documents on Sample statements statements
basis basis
All approved locations and All approved locations and All approved locations and All approved locations Chennai,Hyderabad,Coi Chennai,Hyderabad,Coi
those which might be those which might be those which might be and those which might be mbatore and Bangalore. mbatore and Bangalore.
Locations approved by management approved by management approved by management approved by
in future in future in future management in future
Repayment mode PDC/ECS PDC/ECS PDC/ECS PDC/ECS PDC/ECS PDC/ECS
None. Recourse will be None. Recourse will be None. Recourse will be None. Recourse will be None. Recourse will be None. Recourse will be
based on the Loan based on the Loan based on the Loan based on the Loan based on the Loan based on the Loan
Collateral agreement and the agreement and the agreement and the agreement and the agreement and the agreement and the
PDCs/ECS mandate signed PDCs/ECS mandate signed PDCs/ECS mandate signed PDCs/ECS mandate PDCs/ECS mandate PDCs/ECS mandate
by the customer by the customer by the customer signed by the customer signed by the customer signed by the customer
Restricted profiles As per annexure 1 As per annexure 1 As per annexure 1 As per annexure 1 As per annexure 1 As per annexure 1
As defined by collections/FI As defined by As defined by As defined by As defined by As defined by
Restricted area Agency. collections/FI Agency. collections/FI Agency. collections/FI Agency. collections/FI Agency. collections/FI Agency.
5%.No Local deviations on 5%.No Local deviations on 5%.No Local deviations on 5%.No Local deviations 5%.No Local deviations 5%.No Local deviations
the same.Can be signed off the same.Can be signed the same.Can be signed on the same.Can be on the same.Can be on the same.Can be
Fee by business head. off by business head. off by business head. signed off by business signed off by business signed off by business
head. head. head.
To be restricted to one loan To be restricted to one To be restricted to one To be restricted to one To be restricted to one To be restricted to one
Family Exposure per family. loan per family. loan per family. loan per family. loan per family. loan per family.

Documentation Required - Productwise

Product criteria Income - Sal Income Semp Repayment BT Banking

Income Proof Mandatory Mandatory Waived Waived Waived
Address Proof Mandatory Mandatory Mandatory Mandatory Mandatory
Id Proof Mandatory Mandatory Mandatory Mandatory Mandatory
Bank Statement Latest 3 months Latest 3 months Latest 6 months Latest 6 months Latest 6 months
DOB Proof Mandatory Mandatory Mandatory Mandatory Mandatory
Repayment Proof NA NA Mandatory Mandatory NA
Business Proof NA Mandatory Mandatory Mandatory Mandatory
The information contained in this document is strictly confidential.This document in whole or in part is restricted and should not be re produced or
Furnished to third parties or made public without the prior written permission of the National Credit Manager, Cholamandalam DBS.
ced or
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Deviation Matrix - Personal Finance

Ver 1.2
Policy Deviation - SPSL -Salaried Sep-06

Nature of Mitigants to be validated by Level 4- Level 3- Level 2- DCM/PM Level 1- Deviation

Deviations Credit Managers NCM RCM BCM Codes
Residence Min 6 months in current residence for Yes Yes Yes Yes DVRS
Stability rented. Should meet employment
stability norms.
Office Stability No deviation on Total employment Yes Yes Yes Yes DVOS
norm.
Average bank No deviation in Income norms Yes Yes Yes DVABB
balance norms No cheque return in
not met ie., less bank statement
than 1 time of
EMI
Cheque bounce
in bank
statement
Up to One bounce No bounces in the latest 1 month Yes Yes Yes Yes DVCBB1
(I/W bounce) bank statement. No EMI return in
the last 3 mths

Policy Deviation – Self employed

Resi cum office- Own House Yes Yes Yes DVRCB
(No separate Years in Business > 3yrs in same city
office set-up) (Business proof to attached).
Residence Min 6 months in case of rented Yes Yes Yes Yes DVRS
stability house. Office should be owned.
Min 1 and half years in Current Yes Yes Yes Yes DVOS
Business business. No
stability deviation on residence stability
No deviation in Income norms
ABB norms not No cheque return in
met bank statement
Less than one Yes Yes Yes DVABB
time of emi
Cheque bounce
in bank
statement
Up to One bounce No bounces in the latest 2 month Yes Yes Yes Yes DVCBB1
(I/W bounce) bank statement. No EMI return in
the last 3 mths.
Caution Profiles Can be done provided the following Yes Yes DVCP
Refer annexure mitigants are met a) Own house b)
for caution Business stability of more than 2
profiles years c) PL track for 6mths or tw
loan repayment

Policy Deviation – SURROGATES

Non approved Yes Yes Yes DVNAF

financier PDC backed repayment track
Cheque bounce
in bank
statement ( Non
Emi Return)
Up to One bounce No bounces in the latest 1 month Yes Yes Yes Yes DVCBB1
(I/W bounce) bank statement. No EMI return in the
last 3 mths
Up to Two No bounces in the latest 1 month Yes Yes DVCBB2
bounces (I/W bank statement. No EMI return . No
bounce) 2 cheque returns in the same month

Upto 1 EMI Return No Emi return in the last 3 months, Yes Yes
should have been paid within 30
days (proof to be attached).
Caution Profiles Can be done provided the following Yes Yes Yes DVCP
Refer annexure mitigants are met a) Own house b)
for caution Business stability of more than 2
profiles years c) PL track for 6mths or tw
loan track.

Policy Deviation – Banking SURROGATE

Number of Minimum of 18 transactions, average Yes Yes Yes DVCBT

Transactions not balance greater than Rs2500.
met (Self
Employed)
Number of Credits Not lower than 10 credits, average Yes Yes Yes DVCBN
in the Bank not balance to be greater than Rs2500.
met.

Document Deviations:

Resi proof not Residence FI to confirm his Yes Yes Yes DVDRP
as per policy existence. No other deviation in file.
Office proof not Office FI should be positive. No other Yes Yes Yes DVDOP
as per policy deviation in file.
(Salaried)
For SE- ITR filed ITR filed within a gap of 6 mths Yes Yes DVDITR
within a gap of should be supported by previous
6 mths and year ITR ie., 3 years ITR required
same date filed
ITR
DOB Proof not Yes Yes Yes DVDOB
as per policy

Process Deviations:

MTNL / BSNL No waiver on office proof & Yes Yes Yes Yes DVPTL
Dedupe Telecheck at office to be positive. For
residence, telecheck and fi at
residence to be positive.

Bank statement Original bank statement to be Yes Yes Yes Yes DVBRC
verification- checked by BCM. Internal scrutiny
Failed report by report (checking basic conditions in
RCU (not able to bank) to be positive
verify)
Residence FI No deviation on critical negative Yes Yes Yes Yes DVRFI
negative reasons as listed below:
· Defaulter
· Bad market reputation
· Person does not exist
· Negative neighborhood
check
Office FI Office TVR to be positive. Employee Yes Yes Yes Yes DVOFI
negative for ID card to be produced. Residence FI
entry not should be positive, latest payslip to
allowed in case be attached or latest salary credit in
of salaried bank.
Office fi Residence FI should be positive Yes Yes Yes DVOFI
negative for Non
critical reason
for
SE/Surrogate
cases
Office Outside Yes Yes Yes Yes DVOGL
Geo limit only Resi FI should be positive; For office
for salaried telecheck should be positive
CIBIL DEDUPE
Match
Track record of one personal loan for Yes Yes Yes DVDEP
for Credit Card 12 months and one CC track for 12
W/O before months validated by CIBIL or Track
March 2004 record
DPD greater No amount to be outstanding as on Yes Yes Yes DVDEP
than 30 date
Note:
Branch Manager will be empowered to sign off loan amount enhancement and tenor
change with the following conditions -
a.The loan amount may be enhanced by 15% of gross loan value capped to Rs.5000/-, deviation code
to be captured as ' DVLAE ' .
b.Tenor may be reduced or increased by 6 months provided EMI variance is less than Rs.250/-, deviation
code to be captured as ' DVLTC '
Both the above deviations cannot be taken for the same case.
No Caution profiles in banking surrogate program.
No devaitions on negative profiles, refer annexure for negative profiles.
 Return to Main page

Documentation-Personal Finance
DOCUMENTS REQUIRED
Income proof Income Tax Return acknowledged by ITO
Form 16
Salary Slip and salary credit in bank statement should
match with salary slip.
Salary Certificate only for Govt or Salary certificate with
salary credit
Intimation under section 143 of the IT Act
Salary credit in bank for the last 3 months, with the credit
clearly mentioning “salary”
Salary credit through cheque can be accepted subject to 6
months bank statement reflecting the cheque deposit,
consistency in amount, deposit date and should be backed
by a payslip

Address proof Ration Card

Utility Bills not older than 60 days from application date
Life insurance policy paid premium receipt of latest year
Valid passport (should not have expired)
Voters ID Card
House Allotment letter from the Government/Registered
societies
Property papers – property registered deed
Latest two credit card statements in applicant’s name
Latest gas bill (not older than 60 days from application
date) in applicants name or in the name of immediate
family, defined as parents, spouse, children. Relationship
proof is required if in family member’s name
Passport
Registered Rent Agreement
Bank passbook attested or latest statement.No change in
address to noticed in the passbook last 6months.
Post paid mobile bill statement
Identity proof Valid passport (should not have expired)
Voters ID
Valid driving license (should not have expired)
Photo Credit/Debit/ATM Card
Pan Card
Employee photo ID card issued by Government/ reputed
public limited (listed with NSE/BSE)
Employee State insurance medical cards with photographs
 Medical Insurance cards from Public sector insurance
companies with photographs
Bank passbook with photo attested

DOB Proof Valid passport (should not have expired)

Valid driving license (should not have expired)
Pan Card
10th /12th Mark Sheet
LIC policy certificate

Repayment Proof Statement of Account

6 months clearance proof in bank statement
Welcome letter or amort schedule to be attached.
Caution Profiles
Courier Companies
Placement Agencies and Manpower Agencies
Travel and Tour operators
STD booth and Xerox operators
Insurance Agents with LIC
Staff in Newspapers (Administration staff only)
Commision agents and Traders
BPO and software company profiles in case of
salaried.Staying in own house and earning > 10k salary.
Tax consultants except professionals
Builders
Beauty Parlours
Negative Profiles
BIFR companies
Companies in RBI list of defaulters
Investment companies
Film related companies and Film personalities
Police and Armed Forces
Politicians
Bar Owners
Lawyers and Advocates
Media and Film related companies
Editors and Journalists
Video and CD parlours
Labour contractors
Finance companies
Chit Fund/Nidhi Companies
Collection and DSA profiles
Security/Detective agencies
Share Brokers
Real Estate Agents
Garage mechanics and Garage Owners(other than authorised workshops)
Defense related establishments where applicant is staying in organisation township
CBI, Intelligence Bureau, RAW
Insurance agents in Private Insurance companies